MURCO PETROLEUM LIMITED - Annual Accounts

Form: AA - Annual Accounts

GROUP OF COMPANIES' ACCOUNTS MADE UP TO 31/12/09

Filed on: 24 Sep 2010

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MURCO PETROLEUM LHVIITED
AND SUBSIDIARY COMPANY
DIRECTORS' REPORT AND FINANCIAL STATEMENTS
INDEX
Item Page No
l Directors’ Report
# Statement of Drrectors’ Responsxbrlmes
# Report of the Independent Auditors
# Consolxdated Profit and Loss Account for the Year Ended ##” December ####
# Consolxdated Balance Sheet at ##” December ####
# Company Balance Sheet at # ls' December ####
# Consolrdated Cash Flow Statement for the Year Ended ##" December ####
# Statement of Recogmsed Gams and Losses for the Year Ended ##” December ####
# Notes to the Fmanelal Statements

Page l
MURCO PETROLEUM LHVIITED
AND SUBSI])lay COMPANY
DIRECTORS' REPORT
The treetops present their annual report together with the audited financial statements for the year ended
###' December ####
PRINCIPAL ACTIVITIES
The prtrtctpal activates of the Group consist of the relenting of crude otl and the distribution and marketing of
petroleum products
BUSINESS REVIEW
Murco Petroleum Ltd ta the UK’s smallest integrated crude otl refiner and marketer of otl products, with a market
share of approximately # percent of the UK’s refinery capacity and _lust over # percent of the retail market
Throughout ####, Murco distributed refined products t the Untted Ktngdom Eom the wholly-owned Milford Haven
greenery Durtng the year the refinery had a crude capacity of ###,### barrels of crude OT] per day and crude and
product storage capacity of #,###,### barrels Murco operates three rat-fed distribution terminals to supply product
to tits own retail network and also to other otl companies and distributors to tether buy, exchange or throughput otl
products There are ### Company stations, ### of which are branded Murco with the remainder under various third
party brands The Company owns the freehold under ### of the stets and leases the remainder
OPERATING PERFORMANCE
The reported profit for the year of the Group, despite weak refinery margins, reflects the supplicant rest t crude otl
and refined product prices and a rest t the value of the pound against the dollar which resulted t fOregon exchange
gaits on dollar based loans The Group accounts for inventory under a Hrst-t, first-out bast tn accordance with
U K accounting standards Thts means that the performance of the refinery has been postoperatilevy impacted by
charging lower cost historical inventory through cost of sales If current purchases had been applied to the cost of
current ported sales, under a current cost or last-m, first-out accounting policy for inventory, then reported income
before tax would have been reduced by £## mutilator Thts would then more genuinely reflect the operating
performance of the refinery
Durmg the year Murco processed a total of ##,###,### barrels of manly Nnorth Sea crude otl, slightly down from
##,###,### barrels processed t #### It also processed #,###,### barrels of purchased feedstock, down from
#,###,### barrels t #### In the first half-brother year the refinery experienced several outages often conversion blurts
which reduced the need for spotted ffeedstock In the second half of the year contd runs and conversion unit
throughputs were reduced m response to unusually low refining margins
KEY PERFORMANCE INDICATORS
The Company uses a number of non-financial performance educators, one of them refinery process capacity rate
(utilisation) Thts was ## #% tit ####, Sl #% t #### and ## #% t #### Other non-fractal trtdedicators preclude
those Montgomery health and safety statistics and complaints relating to notes and odour
RISKS AND UNCERTAINTIES
At the end of the year Murco ta well postponed to further expand tits retail network as opportunists bcome
available Cmde otl and reined product prices remain volatile, and the level of the refining margin ta the principal
uncertainty to the future prosperity of the Group
CORPORATE SOCIAL RESPONSIBILITY
The Board of Dtrectors treats the areas of environmental and octal rresponsibility as fundamental to the way the
Group conducts tits busyness The Board of Dtrectors beeves that postdate actions with respect to environmental and
octal rresponsibility are not only desirable t ther ovim night but are also of potential economic and commercial
benefit to the Group and considers environmental and octal mtaters for identifying, evaluating and managing risks
to the Group
The Group’s approach to Corporate Soctal Responsthtltty can best be summarised by tits stated core values
I To conduct our business dealings with integrity, t a socially responsible and ethical manner
# To treat our customers, suppliers and employees fatly, with respect and dignity
» To provide good quality products and service
Q To conduct our activates m a safe and environmentally rresponsible manner

Page #
MURCO PETROLEUM LHVIITED
AND SUBSIDIARY COMPANY
DIRECTORS' REPORT
(continued)
DIVIDENDS
Dtvtdends pats for the year ended ###' December #### were NIL (#### NIL)
OUTLOOK
The results of tote Group for the Etrst half of #### have been impacted by the general economic down tum and the
scheduled outage of the refinery The refinery was down from the end of February until the second half of May for a
comprehensive tum around and implementation of capital projects the largest ones being the bottleneck of the crude
unit capacity and energy conservation projects The outlook for the rest of the year well continue to be impacted by the
general economic Dortmund and volatile refining margins
TRANSFER TO RESERVES
The transfer to reserves ta £##,###,### (#### transfer from reserves was £##,###,###)
MARKET VALUE OF FIXED ASSETS
The directors are of the option that the open market value of the freehold land and buildings of the Group ta t eexcess of
their book value, but have not quantified the exact amount
DIRECTORS
The directors of the Company who served during the year or were appointed prior to the approval of these financial
statements were as follows
D Wood (USA - appointed #“° June ####) C P Demtng (USA » resigned #“d June ####)
S A Cossé (USA) C A Ganus (USA- resigned ##' July ####)
J N Goodfellow (appointed ##"‘ June ####) I Iqbal (resigned ##m June ####)
S V Rhodes J B Gardrter (USA - appointed ##‘l‘ Aprtl ####)
J Clarke B G Kelly (USA - appointed ls' July ####)
B Poutlle
POLICY AND PRACTICE ON PAYMENT OF CREDITORS
It ta Company policy to agree payment terms with suppliers when negotiator contracts or transact The Company
ensures that, subject to any necessary variation whitch may result from suppler-related problems, the agreed payment
tents are adhered to
The Company had ## days’ purchases outstanding as at ###' December #### based on the average fatly amount convoluted
by suppliers during the year
HEALTH, SAFETY AND WELFARE
The directors are committed to ensuring the health, safety and welfare of employees at work so far as rt ta reasonably
practicable and apply high standards throughout the organisation t tlet management and control of operations These
standards are destined to ensure that, m all activates, the Group properly safeguards those who work for rt and those who
may be affected by the Group’s busyness
CHARITABLE DONATIONS
The Company has undertaken to tits employees that rt well match pound for pound, or m the case of medical and
educational chartreuses, double all funds rated for chatty by employees Durtng #### employees rated the sum of £#,###
and accordantly the Company’s donations to charitable organisational amounted to £##,### (#### £l#,###)
Elsewhere, the Company made chartable dcottons amounting to £##,### (#### £##,###)
No polytonal donations were made (#### NIL)

Page #
MURCO PETROLEUM LIMITED
AND SUBSIDIARY COMPANY
DIRECTORS' REPORT
(continued)
DISCLOSURE OF INFORMATION TO AUDITORS
The directors who held office at the date of approval of this directors’ report confirm that, so far as they are each aware,
there ta no relevant audit fomentation of which the Company’s auditors are unaware, and each director has taken all the
steps that he ought to have taken as a director to make himself aware of any relevant audit t fformatted and to establish
that the Company’s auditors are aware of that malformation
AUDITORS
Pursuant to an elective resolution made on ##Th December ####, the Company ta not obliged to reappoint tits auditors
annually aNd KPMG LLP will therefore continue t oface
On behalf board
Dated ,Q/- §_ _QOIO
P Haylock
Secretary # Beaconsfield Road
St Albans
Hertfordshire
ALI #RH

Page #
MURCO PETROLEUM LIMITED
AND SUBSIDIARY COMPANY
STATEMENT OF DIRECTORS' RESPONSIBILITIES IN RESPECT OF
THE DIRECTORS REPORT AND THE FINANCIAL STATEMENTS
The directors are responsible for preparing the Dtrectors’ Report and tote financial statements t aaccordance with
applicable law and regulations
Company law requires the directors to prepare financial statements for each financial year Under that law they have
elected to prepare the financial statements t aaccordance with UK Accountmg Standards arts applicable law (UK
Generally Accepted Accountmg Practtce)
Under company law the directors must not approve the financial statements unless t'tye are satisfied that they give a true
arts fatr vtew of the state of affairs of the company and of the profit or loss of the company for that ported In preparing
these financial statements, the directors are required to
° select settable accounting pOlmsted and then apply them consistently,
~ make judgements arts consternates that are reasonable and prudent,
# state whether applicable accounting standards have been followed, subject to any material departures disclosed
and explained t the financial statements, and
# prepare the financial statements on the gong conce basst unless rt ta appropriate to presume that the group
and tote parent company well continue t bjustness
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the
company transacker and disclose with reasonable accuracy at any time the Enanctal post-town of the company and
enable them to ensure that the financial statements comply with tote Compantes Act #### They have general
responsibility for taking such steps as are reasonably open to them to safeguard the assets of the company and to prevent
and detect fraud and other irregular

PaGe #
INDEPENDANT AUDITORS’ REPORT TO THE MEMBERS OF
MURCO PETROLEUIVI LIIVIITED AND SUBSIDIARY COMPANY
We have audited the financial statements of Murco Petroleum Ltmtted and substandard companies for the year ended ##
December #### set out on pages # to ## The financial reporting framework tattle has been applied m tetra preparation ta
applicable law and UK Accountmg Standards (UK Generally Accepted Accountmg Practtce)
'Ihts report ta made solely to the company members, as a body, t aaccordance with Chapter # of Part ## of the
Compantes Act #### Our audit work has been undertaken so tattle we might state to the company members those
matters we are required to state to them t an auditors' report and for no other purpose To the fullest etent perrantry by
law, we do not accept or assume responsibility to anyone other than the company and tote company members, as a body,
for our audit work, for tilts report, or for t#e options we have formed
Respective responsibility of directors and auditors
As explained more hilly t the Dtrectors' Responstbtltttes Statement set out on page #, tote directors are responsible for
tote preparation of the financial statements and for being satisfied that they give a true and fatr vtew Our responsibility ta
to audit tote financial statements m accordance with applicable law and Intemattonal Standards on Audtttng (UK and
Ireland) Those standards require us to comply with the Audttmg Practtces Boards (APB‘s) Ethtcal Standards for
Audttors
Scope of the audit of the financial statements
A description of the scope of an audit of financial statements ta provided on the APB‘s web-stet at
WWW fr ogr UK/ape/scope/UKNP
Opinion on financial statements
In our option the financial statements
# give a true and fatr vtew of the state of the company afathers as at ## December #### and of tits profit for the
year then ended,
# have been properly prepared t aaccordance with UK Generally Accepted Accounttng Practtce, and
# have been prepared t aaccordance with the requirements of the Compantes Act ####
Opimon on other matter prescribed by the Companies Act ####
In our option the malformation given t the Dtrectors' Report for tote financial year for which the fractal sstatements are
prepared ta consistent with the Enanctal statements
Matters on Baltic we are required to report by exception
We have nothing to report t rrespect of the following matters where the Compantes Act #### requires us to report to you
rt; t.n our option
# adequate accounting records have not been kept, or rectums adequate for our audit have not been received from
branches not visited by us, or
# the Gnanctal statements are not t aagreement with the accounting records and retrofits, or
° certain disclosures of directors' remuneration spectacled by law are not made, or
# we have not received all the transformatioal aNd explanations we require for our audit
Dated l\ Q## O
Mike Maloney (Sentor Statutory Auditor)
for and on behalf of KPMG LLP, Statutory Audttor
Chartered Accountants
# Saltsbury Square
London
EC#Y SBB

MURCO PETROLEUM LIIVIITED
AND SUBSIDIARY COMPANY
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED #ls T DECEMBER ####
N toe #####
£'###
TURNOVER l(d) #,###,###
Cost of sales (#,###,###)
GROSS PROFIT ##,###
Dtstrtbutton costs (##,###)
Admmtstrattve expenses (##,###)
Other operating income/(expense) # ##,###
OPERATING PROFIT/(LOSS) ON
ORDINARY ACTIVITIES ##,###
(Loss)/Profit on sale of fixed assets # (##)
PROFIT/(LOSS) ON ORDINARY ACTIVITIES
BEFORE INTEREST AND TAXATION ##,###
Interest receivable and stellar income # #,###
Interest payable and stellar charges # (#,###)
PROFIT/(LOSS) ON ORDINARY ACTIVITIES
BEFORE TAXATION # ##,###
Tax on profit on ordinary activates # (##,###)
PROFIT/(LOSS) ON ORDINARY ACTIVITIES
AFTER TAXATION ## ##,###
All results have been derived from continuing operations of the Group
The notes on pages ll to ## form part of the fractal sstatements
####
£'###
#,###,###
(#,###,###)
##,###
(##,###)
(##,###)
(##,###)
(##,###)
##
(##,###)
#,###
(##,###)
(##,###)
##,###
(##,###)
Page #

MURCO PETROLEUM LIMITED
AND SUBSIDIARY COMPANY
CONSOLIDATED BALANCE SHEET AT ##" DECEMBER ####
Page #
Eg #### ####
£'### £'### £`O## £'##O
FIXED ASSETS
intangible assets #,### #,###
Tangtble assets ###,### ###,###
###,### ###,###
CURRENT ASSETS
Stocks ###,### ###,###
Debtors ###,### ###,###
Investments ##,### ##,###
Cash at bank and rt# hand ##,### ##,###
###,### ###,###
CREDITORS AMOUNTS FALLING DUE
WITHIN ONE YEAR (###,###) (###,###)
NET CURRENT ASSETS ##,### ##,###
TOTAL ASSETS LESS CURRENT LIABILITIES ###,### ###,###
CREDITORS: AMOUNTS FALLING DUE AFTER
MORE THAN ONE YEAR (###,###) (###,###)
PROVISIONS FOR LIABILITIES AND CHARGES (##,###) (##,###)
NET ASSETS EXCLUDING PENSION LIABILITIES ###,### ###,###
PENSION LIABILITIES (#,###) (#,###)
NET ASSETS INCLUDING PENSION LIABILITIES ###,### ###,###
CAPITAL AND RESERVES
Called up share capital ##,### ##,###
Share premium account ## ##
Capttal contributions ### ###
Revaluatton reserve ##,### ##,###
Other reserves \ #
Profit and loss account ##,### ##,###
SHAREHOLDERS' FUNDS - EQUITY ###,### ###,###
These financial statements were approved by the Board of Dtrectors and stated on tits behalf by'
S V Rhodes gm/ Dated # I S mph lo
Director
Notes on pages ll to ## form part of the financial statements

MURCO PETROLEUM LIIVIITED
COMPANY BALANCE SHEET AT ##" DECEMBER ####
Page #
Note ##### ZQM#
£'### £'### £'### E###
FIXED ASSETS
Intangtble assets # # #,### #,###
Tangtble assets ## ###,### ###,###
###,### ###,###
CURRENT ASSETS
Stocks ## ###,### ###,###
Debtors ## ###,### ###,###
Investments ## ##,### ##,###
Cash at bank and t hand ##,### ##,###
###,### ###,###
CREDITORS AMOUNTS FALLING DUE
WITHIN ONE YEAR ## (###,###) (###,###)
NET CURRENT ASSETS ##,### ##,###
TOTAL ASSETS LESS CURRENT LIABILITIES ###,### ###,###
CREDITORS: AMOUNTS FALLING DUE
AFTER MORE THAN ONE YEAR ## (###,###) (###,###)
PROVISIONS FOR LIABILITIES AND CHARGES ## (##,###) (##,###)
NET ASSETS EXCLUDING PENSION LIABILITIES ###,### ###,###
PENSION LIABILITIES ## (#,###) (#,###)
NET ASSETS INCLUDING PENSION LIABILITIES ###,### ###,###
CAPITAL AND RESERVES
Called up share capital ## ##,### ##,###
Share premium account ## ## ##
Capttal contributions ## ### ###
Revaluatton reserve ## ##,### ##,###
Other reserves ## # #
Profit and loss account ## ##,### ##,###
SHAREHOLDERS' FUNDS - EQUITY ## ###,### ###,###
These financial statements were approved by the Board of Dtrectors and signed on tits behalf by
S V Rltodes ' ` Dated
Director Uv-/J # ( #° (#
Company Regtstratton No ######
Notes on pages # # to ## form pan of the financial statements

MURCO PETROLEUM LIIVIITED
AND SUBSIDIARY COMPANY
CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED ####* DECENIBER ####
Page #
Note #### ####
£'#O# £`### £'### £'###
CASH INFLOW FROM OPERATING
ACTIVITIES ## ##,### ##,###
RETURNS ON INVESTMENT AND SERVICING OF
FINANCE
Interest received #,### #,###
Interest pats (#,###) (# l,###)
CASH (OUTFLOW) FROM RETURNS ON
INVESTMENT AND SERVICING OF FINANCE (#,###) (#,###)
TAXATION
UK corporation tax (pats)/recovered (#,###) ##,###
CAPITAL EXPENDITURE AND FINANCIAL
INVESTMENT
Purchase of tangible fixed assets (##,###) (##,###)
Purchase of intangible fixed assets (##)
Sale intangible fixed assets # ## ###
CASH OUTFLOW FROM CAPITAL EXPENDITURE
AND FINANCIAL INVESTMENT (##,###) (##,###)
EQUITY DIVIDENDS PAID ~ -
CASH INFLOW BEFORE MANAGEMENT
OF LIQUID RESOURCES #,### ##,###
MANAGEMENT OF LIQUID RESOURCES
Bartk team deposits Dravidian/(made) ##,### (##,###)
FINANCING
Net (decrease) t dbet (#,###) (#,###)
Capttal element of finance lease rental payments - -
INCREASE/(DECREASE) IN CASH IN THE PERIOD ##,### (#,###)
The notes on pages # # to ## form part of the financial statements

MURCO PETROLEUM LIIVIITED
AND SUBSIDIARY COMPANY
CONSOLIDATED STATEMENT OF RECOGNISED GAINS AND LOSSES
FOR THE YEAR ENDED ##" DECEMBER ####
PROFIT/(LOSS) FOR THE YEAR
ACTUARIAL LOSSES ON DEFINED
BENEFIT PENSION SCHEMES
TAX IN RESPECT OF ITEMS RECOGNISED
DIRECTLY IN EQUITY
TOTAL RECOGNISED GAINS/(LOSSES) FOR THE YEAR
All results have been derived from the contractual operations of the Group
####
soon
##,###
(#,###)
#,###
##,###
Page ##
zoos
£'###
(##,###)
(#,###)
###
(##,###)
There ta no material difference between the result as disclosed t the profit and loss account and the result on an
unmodified historical cost bast
The notes on pages # # to ## form part of the financial statements

Page ##
MURCO PETROLEUM LIIVIITED
AND SUBSIDIARY COMPANY
NOTES TO THE FINANCIAL STATEMENTS
PRINCIPAL ACCOUNTING POLICIES
The following accounting pollutes have been applied consistently t dEaling with it€ms which are considered
material #.r# relation to tote Group's financial statements
(#)
(b)
(#)
(d)
(#)
(#
Basis of preparation
(#) The consolidated financial statements reflect the state of affairs and results of Murco Petroleum
Ltmtted and tits substandard undertaking ("the Group") alter elimination all significant
accompany balances and transactions, all of which are made up to ##” December, #### and are
prepared on a historical cost bast of accounting Murco Petroleum Ltmtted ("the Company") has
taken advantage of the exemption under S ### of the Compantes Act #### from the requirement
to present a separate profit and loss account
(##) The financial sstatements have been prepared t aaccordance W#l.l'# applicable accounting standards
(III) ###% of the Company`s voting rights are controlled by tote Group headed by Murphy O##
Corporatton The Company has therefore taken advantage of the exemption contained t FRS #
and has not disclosed transactions or balances with ententes which form part of the Group The
consolidated financial statements of Murphy O## Corporatton, Waltham which this Company ta
included, can be obtained from tote address given t ntoe ##
Accotmting standards
These financial statements have been prepared m accordance wnth applicable UK accounting standards
Furetgn exchange
Tradmg results are translated at transaction rates for the year Monetary assets and leatherettes denominated
t fOregon currencies are translated into sterling stung tote rate of exchange r#.tattle#g at the balance sheet date
and gnats and losses on translation are included t the prohibit and loss account Non-monetary assets and
leatherettes tattle are measured t tems of historical cost t a foreign currency are translated us-tg tote
exchange rate at tote date of the transaction
Turnover
Turnover represents amounts rreceivable, net of excise duty arts value added tax, m respect of goods and
services provided during the year Sales denominated it foreign currencies are translated at the rate ruling
on the date of the transactions
Acquisttion Accounting
Unless otherwise stated, the acquisition method of accounted has been applied Under this method, tote
results of the buttresses aaccoutred t the year are included t the consolidated prohibit and loss account from
the date of acquisition
Intangible Assets
intangible assets comprise of the cost of acquitter licences held to operate refinery process units
Amorttsatton ta provided over the useless left of the refinery process unit to which the licence relates and ta
calculated on a straight lent bast

Page ##
MURCO PETROLEUM LIIVIITED
AND SUBSIDIARY COMPANY
NOTES TO THE FINANCIAL STATEMENTS (continued)
PRINCIPAL ACCOUNTING POLICIES (continued)
(lg
(##)
(#)
(J)
Deprectatton
Deprectatton ta provided on the orthogonal cost fall asets aNd ta calculated on the straight litre bast at rates
sufficient to reduce them to their estimated residual value
(#) Freehold buildings
Over ## years
(##) Leasehold land and butlers
Over the ported of the lease
(III) Plant and equipment
Over the orchestrated left of the asset ranging from # to ## years
(TV) Road tankers
Over # years
(v) Office equipment arts computers
Over the estimated left of the asset ranging from # to ## years
No depreciation ta provided t rrespect of freehold land, precious metals used t ccatalyst beds at the
Mtlford Haven refinery and capital work m progress Murco loaned equipment to dealers ta deprecated on
a straight line bast oover the period of the agreement
Gams and losses on disposals or retirements are included t mcome
Impairment
The carrying value of all the group’s assets are reviewed at each balance sheet date to determine whether
there IS any indication of compartment For the purposes of assessing compartment, assets are grouped at tote
lowest levels for which there are separately identifiable cash flows These cash»generating units are aligned
to the busyness unit structure the group uses to manage tits business Cash loss ta recognised to the extent
that the carrying value of the cash-generating unit exceeds tits estimated recoverable amount
Stocks
Stocks are valued at the lower Ofcost and estimated net realisable value Cost includes an addition, where
relevant, for transport, handling, processing and other incidental costs The dollar element of cost ta
expressed m sterling at tote average market rate m the month of purchase
Deferred taxation
Deferred taxation ta recognised, without discount, tn respect of all ttmtng differences that have
originated but not reversed by t.he balance sheet date where transactions or events have occurred at that
date that well result t an obligation to pay more, or a right to pay less tax m the future Deferred tax assets
are recognised only to the extent that rt ta considered more likely than not that there well be taxable profits
from which the underlying tuning ft differences can be deducted
Deferred tax ta measured on an unaccounted basst at the tax rates that are expected to apply t tlet periods
t whitch ttmmg differences reverse, based on tax rates and laws enacted or substantially enacted at tote
balance sheet date

Page ##
MURCO PETROLEUM LIMITED
AND SUBSIDIARY COMPANY
NOTES TO THE FINANCIAL STATEMENTS (continued)
PRINCIPAL ACCOUNTING POLICIES (continued)
(k)
Pe Winston
In accordance wnth FRS ##, for defined contribution schemes, contributions are charged to tote profit and
loss account t the ported m which they rates
For defined benefit schemes the amount charged to operating profit are tote current service cost, past
service cost and gaits and losses on settlements and curtailments An amount which represents the
expected increase t tlet present value of scheme leatherettes net of the expected rectum on scheme assets IS
included wtthtn net interest retrievable
Actuartal gathers and losses are recognised mediately tn tote statement of total recognised gnats and
losses These consist of differences between actual and expected rectum on scheme assets during tote year,
experience losses on scheme leatherettes and the impact of arty changes to push-buttons PEvanston lab#l#t#es
are recognised on the consolidated balance sheet and represent the difference between the market value of
scheme assets and tote present value of scheme leatherettes at tote balance sheet date, net of deferred taxation
(#) Leases
(ml
(H)
(#)
l f)
Assets held under finance leases and here purchase contracts are capitalised at their fatr value at the
reception of the lease arts deprecated Oover the shorter of the ported of the lease and the estimated useful
economic lives of the assets The finance charges are allocated over the ported of the lease t pproportion
to the capital amount outstanding and are charged to the profit and loss account
Rental charges on operating leases are charged to the profit and loss account on a straight lent bast oover
the left of the lease
Goodwill
Goodwtll Anson on consolidation, representing the excess of purchase consideration over the fatr value of
the net assets acquired, was written off against reserves t the year of acquisition In fixture goodwill
artiste on consolidation well be capitalised it accordance with accounting standard FRS ##
Cash and liquid resources
Cash, for the purpose of the cash flow statement, comprises cash m hand and deposits repayable on
demand, less overdrafts payable on demand
Ltqutd resources are current asset investments which are disposable without curtail or disruptor the
busyness and are tether readily convertible into known amounts of cash at or close to their carrying values
or traded t an active market Ltqutd resources comprise tent deposits of less than one year (other than
cash)
Segme natl reporting
All third party income and costs are derived from downstream operations wtthtn the Untted Ktrtgdom All
net assets are held Waltham the Untted Ktngdom
Government grants
Any grant received from central, regional or local governmental towards the purchase of fixed assets ta
credited against tote gross cost of such assets Deprectatton on these grants ta released back into tote profit
and loss account each year at a rate commensurate wattle the depreciation rate applicable to the orthonorlam
asset

Page ##
MURCO PETROLEUM LIMITED
AND SUBSIDIARY COMPANY
NOTES TO THE FINANCIAL STATEMENTS (continued)
PRINCIPAL ACCOUNTING POLICIES (continued)
Provisions
Provtstons have been made for the clean-up of contaminated land against the three comp arty operated
thermals and the comp arty owned filling stations scheduled for disposal Under FRS ##, ‘Provtstons and
Contmgenc#es`, the Company has a construe'cut#be obligation to clean-up contaminated land and tote
provision ta a best estimate of the expenditure required to settle the obligation at the balance sheet date
Provtstons also rates for projected share based payments granted to a certain number directorship and staff
by the ultimate parent company, Murphy OtlCorporat#on, and rechargeable to tote Group arts Company
(r) Stock Options
Tlte Group currently has various share based payment schemes for tits employees and Dtrectors, details of
which are given t ntoe ##
The fatr value of share-based awards ta deterrent at the date of grant of the award allowing for the
effect of any market-based performance conditions For all grants of share options, tote fatr value as at the
date of grant ta calculated stung an appropriate option pragmatIC model (see note ##) arts tote corresponding
expense ta charged to the profit and loss statement on a straight lent bast oover the vesting ported
The fatr values are calculated by an independent third party, with settable modification to allow for
employee tu mover allier vesting and early exercise The inputs to the model include tote share price at
date of grant, exercise price, expected volatility, expected dividends, risk free rate of interest and pattens
of early exercise of the plan participants
ACQUISITIONS
The Group made no acquisitions during the year
OTHER OPERATING INCOME
Other operating income for the year consists mainly of exchange gnats as lard out t ntoe #, plus income firm
the provision of compulsory stock obligation to third patters, income derived from the use of the re#nwry’s
facilitates by third patters and the valuation of stocks following the U K Budget duty increases
LOSS ON SALE OF FIXED ASSETS
The loss on the sale of fixed assets consists manly of losses artiste on the disposal of service station equipment

MURCO PETROLEUM LIIVIITED
AND SUBSIDIARY COMPANY
Page ##
NOTES TO THE FINANCIAL STATEMENTS (continued)
#) INTEREST RECEIVABLE AND SIMILAR INCOME
####
£'###
Interest receivable on bank accounts #,###
Interest receivable from group undertakings #
Expected rectum on pension scheme assets net of pension
scheme leatherettes (see note ##) -
#,###
u) INTEREST PAYABLE AND SIIVIILAR CHARGES
Amounts payable on bank loans and overdrafts (##)
Interest payable to group undertakings (#,###)
Expected rectum on pension scheme assets net of pension
scheme leatherettes (see note ##) (##)
(#,###)
PROFIT/(LOSS) ON ORDINARY ACTIVITIES BEFORE TAXATION
Profit/(loss) on ordinary activates bbefore taxation ta stated after charging or (credential)
####
£`###
Deprectatton of intangible fixed assets (note ##) - owned ###
Deprectatton of tangible fixed assets (note ##) - ovulated ##,###
Hue of plant and machinery #,###
Other operating leases #,###
Audttors' remuneration
-Audtt pursuant to legislation ##
-Audtt for group reporting ###
-Tax I#
-Penston #
-Other ##
Rents receivable (###)
Etchange losses/(gaits)
-Parent (##,###)
-Other group undertakings (#,###)
-Thtrd party #,###
####
£'###
#,###
##
#,###
(###)
(##,###)
(##)
(# #,###)
the following
####
£'###
###
##,###
#,###
#,###
###
##
##
##
##
(###)
##,###
##,###
##,###

#
#
MURCO PETROLEUM LIMITED
AND SUBSIDIARY COMPANY
NOTES TO THE FINANCIAL STATEMENTS (continued)
EMOLUMENTS OF DIRECTORS
Page ##
#### ####
£`### £'###
Dtrectors' emoluments ### ###
Company contribution to benefit schemes (Outltned below) ## ##

The aggregate of emoluments of the highest pats director was £###,### (#### £###,###) with no pension
contributions made by the company to a benefit scheme on hits behalf (#### £NIL) He ta a member of the
fortunate parent company’s benefit scheme, and hits accrued pension at the year-end ta included wtthtn the accounts
of Murphy O## Corporatton (#### MOC)
Average number of directors
#### ####
Rettrement benefits are accruing to tote following number of
Dtrectors under defined benefit schemes Q Q
Tlte remuneration and retirement benefits for directors are disclosed on a time allocation bast of work done for the
substandard The details of remuneration, retirement benefits and share options for directors resident m the USA are
disclosed t the accounts of the ultimate parent, Murphy O## Corporatton (see note ##)
STAFF NUMBERS AND COSTS
The average number of persons employed by the Group (McClure directors) during the year, analysed by
category, was as follows
####
Techntcal staff #
Refinery and marketing staff ###
Ftnanctal and administrate stff ##
###
The aggregate payroll costs were as follows
####
£'###
Wages and salaries ##,###
Soctal security costs #,###
Other pension costs #,###
# # ,###
####
#
###
##
###
####
£'###
##,## #
#,###
#,###
##,###

MURCO PETROLEUIVI LIMITED
AND SUBSIDIARY COMPANY
NOTES TO THE FINANCIAL STATEMENTS (continued)
TAX ON PROFIT ON ORDINARY ACTIVITIES
a) The taxation charge for the year composes
U K Corporatton Tax at ##% on ordinary active###Se (#### ##%)
Current tax on income for the ported
Adjustments m respect of prior periods
Current tax charge for the year (see note b )
Deferred tax on income for the ported
Deferred tax charge for the year
Total tax (credit)/charge for the year
b) Current tax reconciliatory
Profit/(loss) on ordinary activates bbefore tax
Profit/(loss) on ordinary activates multimate at the average
rate corporation tax t the UK of ##%
Effects of
Expenses not deductible for tax purposes
Adjustments t rrespect of nor perodes
Capttaltsed allowances for ported t eexcess of depreciation
Rollover relief on profit on disposal of property
Addtttonal tax deduction for stock option charge
Tax relief carted bck at a higher rate
Other ttmtng differences
Current tax charge/(credit) for the year
COMPANY PROFIT FOR THE FINANCIAL YEAR
####
£'###
##,###
(###)
##,###
#,###
#,###
##,###
####
£'###
##,###
##,###
#,###
(###)
(#,###)
(##)
(###)
##,###
=
Page ##
####
£'###
(##,###)
###
(##,###)
#,###
#,###
(##,###)
####
£'###
(##,###)
(##,###)
#,###
###
(#,###)
(##)
(###)
(###)
(###)
(##,###)

in accordance with the exemptions allowed by section ### of the Compantes Act #### the Company has not
presented tits own profit and loss account
Dealt with t the accounts of the Company
Retamed by substandard undertakings
####
E###
##,###
#
##,###
####
£'###
(##,###)
#
(##,###)

ll
MURCO PETROLEUM LIMITED
AND SUBSIDIARY COMPANY
NOTES TO THE FINANCIAL STATEMENTS (continued)
INTANGIBLE ASSETS
Group and Company
Cost
At ls Jactuary ####
Addtttons during the year
Transfer from tangible assets
At ##St December ####
Amorttsatton
At ls JJanuary ####
Charged t year
At ##St December ####
Net book value
At ##St December ####
At ls JJanuary ####
Ltcence fees
£'###
#,###
##
#,###
###
###
###
#,###
#,###
Page ##

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MURCO PETROLEUM LIMITED
AND SUBSIDIARY COMPANY
Page ##
NOTES TO THE FINANCIAL STATEMENTS (continued)
##. GROUP COMPANIES
The substandard undertaking Murchison Petroleum Luntted, which ta wholly owned and consolidated into these
accounts, ta engaged m tote Davenport and marketing of petroleum products
European Petroleum Dtstrtbutors Ltd
##. STOCKS
Raw materials and consumables
Fmtshed goods and goods for resale
##. DEBTORS
Amounts falling due without one year
Trade debtors
Amounts owed by parent and fellow group
undertakings
Otlter debtors
Prepayments and accrued income
Corporatton Tax
Amounts falling due after more than one year
Accnted income
I# INVESTMENTS
Bank Term deposits
£# Country of
Ordinary corporation
sheras registration
%
### England and Wales
Group Company
#### #### #### ####
£'O## £'#O# £‘##O £'###
##,### ##,### ##,### ##,###
###,### ##,### ###,### ##,###
###,### ###,### ###,### ###,###
Group Company
#### #### #### ####
£'### £'##O £'### £'###
###,### ###,### ###,### ###,###
### ## ### ##
## ## ## ##
##,### #,### ##,### #,###
- ##,### - ##,###
## ## ## ##
###,### ###,### ###,### ###,###
Group Company
#### #### #### ####
£‘### £'### £'### £'###
##,### # #,### ##,### ##,###

MURCO PETROLEUM LIMITED
AND SUBSIDIARY COMPANY
NOTES TO THE FINANCIAL STATEMENTS (continued)
I# CREDITORS AMOUNTS FALLING DUE WITHIN ONE YEAR
QYOIIE
Trade creditors
Amounts owed to parent and fellow
substandard undertakings
Other creditors include taattorney and octal
security
Corporatton Tax
Soctal security
Other creditors
Other taxes
Accruals and deferred income
Compgny
Trade creditors
Amounts owed to parent and fellow
substandard undertakings
Amounts owed to substandard undertakings
Other creditors include taattorney and octal
security
Corporatton Tax
Soctal security
Other creditors
Other taxes
Accruals and deferred income
####
£### £###
##,###
###,###
#,###
###
#,###
##,###
##,###
##,###
###,###
####
£### £###
##,###
###,###
##
#,###
###
#,###
##,###
##,###
##,###
###,###

£‘###
###
###
#,###
##,###
£‘###
###
###
#,###
##,###
Page ##
####
£'###
##,###
###,###
##,###
##,###
###,###
####
E###
##,###
###,###
##
##,###
##,###
###,###

MURCO PETROLEUM LINIITED
AND SUBSIDIARY COMPANY
NOTES T# THE FINANCIAL STATEMENTS (continued)
I# CREDITORS AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
Group and Company
Accruals and deferred income
Amounts owed to group companies
####
£'###
###
###,###
###,###
Amounts owed to group compartments compose of intercommunicate loans due to the meditates parent company,
Petroleum Ltd and the ultimate controlling party Murphy O## Corporatton
I# PROVISIONS FOR LIABILITIES AND CHARGES
Qroup
Balance at l“ January ####
Total charge for the year t tlet profit and loss accoutre
Addtttons
Transfer to reserves
Costs incurred
Balance at ###' December ####
Company
SI
Balance at # Jartuary ####
Total charge for the year t the profit and loss account
Addtttons
Transfer to reserves
Costs incurred
Balance at ##” December ####
####
£`###
###
###,###
###,###
Deferred Environmental Stock Option
Page ##
Murphy
Taxatton Prgvisigns Rechagge Total
£’### £’### £`### £’###
##,### #,### ### ##,###
#,### - (###) #,###
(# ##) ### ###
##,### #,### ### ##,###
##,### #,### ### ##,###
#,### - (###) #,###
(# ##) ### ###
##,### #,### ### ##,###

M URCO PETROLEUM LIMITED
AND SUBSIDIARY COMPANY
NOTES TO THE FINANCIAL STATEMENTS (continued)
##. PROVISIONS FOR LIABILITIES AND CHARGES (continued)
The amounts provided for deferred taxation calculated under the ltabtltty method are set out below
Page ##
Group
#### ####
Amount Amount
Provtded Provtded
£'### £'O##
Dtfference between accumulated depreciation,
amortised and capital allowances ##,### ##,###
Other tuning differences (#,###) (#,###)
##,### # #,###
Compgny
#### ####
Amount Amount
Provtded Provtded
£'### £'###
Dtfference between accumulated depreciation,
amortised and capital allowances ##,### ##,###
Other ttmtng differences (#,###) (#,###)
##,### # #,###
There are no maternal amounts unprovoked
## RECONCILIATIONS OF MOVEMENTS IN SHAREHOLDERS’ FUNDS
Qroup Cgmpany
##### #####. #.#### ####.#
£'O## £’### £'### £'###
Openmg shareholders' leftmoSt as previously reported ###,### ###,### ###,### ###,###
Profit for the functional year ##,### (##,###) ##,### (##,###)
Actuartal (loss)/profit net of deferred
tax on pension scheme (#,###) (#,###) (#,###) (#,###)
Movement t share based payment (###) #,### (###) #,###
Revaluatton of fixed assets ----
Clostrtg shareholders' leftmoSt ###,### ###,### ###,### ###,###

MURCO PETROLEUM LIMITED
AND SUBSIDIARY COMPANY
NOTES TO THE FINANCIAL STATEMENTS (continued)
## CALLED UP SHARE CAPITAL
Group and Company #### ####
£‘### £'###
Authonsed
###,###,### Ordtnary shares of£l each ###,### ###,###
Allotted, called up and f#.telly pats
##,###,### Ordtnary shares of£l each ##,### ##,###
##. COMMITMENTS
Group and Cgmpany #### #§!##
£'### £‘###
Contr'acted ##.### ##,###
rt) Annual commitments under non-controllable operating leases are as follows
#### ####
Land and Land and
Butldtngs Qghgr Buildings Qther
£'### £‘### £'### £'###
group
Operattng leases which expert
Wtthtn one year ## ### ## ##
in tote second to fifth years inclusive ### ### ## #,###
Over five years #,### - #,### -
#,### #,### #,### #,###
l#.ll.# #.#.#.#
Land and Land and
B_tu#t#it#s Qttter landmass QThur
£'##O £`### £'### £'###
Cunnan!
Operattng leases Blucher expert
Wtthtrt one year ## ### ## ##
in tote second to fifth years inclusive ### ### ## #,###
Over five years #,### - #,# ## -
#,### #,### #,### #,###
Page ##

MURCO PETROLEUM LIMITED
AND SUBSIDIARY COMPANY
NOTES TO THE FINANCIAL STATEMENTS (continued)
PENSION S
Page ##
The Group operates two funded defined benefit pension schemes covering substantially all employees of the
Company and tote meditates parent company The majority of the employees are members of the Murco ####
Penston Scheme The assets of the scheme are held separately firm those of the Company
FRSI# “Retirement Benefits”
The group has accounted for pension costs t aaccordance with FRSI# A full actuarial valuation was carted oit as
at # January #### and updated to ## December #### by a qualified independent actuary
Present value of funded defined benefit obligation
Fatr value of plan assets
Present value of unfunded defined benefit obligation
Defictt #n the schemes
Related deferred tax asset
Penston ltabtltty
Movements t present value of defined benefit obligation
At # January ####
Servtce cost (Employer Cost)
Interest cost
Members' contributions
Actuanal gnat / (loss) on scheme leatherettes
Foretgn currency exchange rate changes
Benefits pats
At ## December ####
Movements t ftar value of scheme assets
At # January ####
Expected return on scheme assets
Actuanal gnat/(loss) on scheme assets
Foretgn currency exchange rate changes
Contrtbuttons by the comp arty
Contrtbuttons by the members
Benefits pats
At ## December ####
Group Company
#### #### #### ####
£'#O# £'### £'### £`###
(##,###) (##,###) (##,###) (##,###)
##,### ##,### ##,### ##,###
(##,###) (#,###) (##,###) (#,###)
#,### #,### #,### #,###
(#,###) (#,###) (#,###) (#,###)
Group Company
#### #### #### ####
£`O## £'### £'### £'###
(##,###) (##,###) (##,###) (##,###)
(#,###) (#,###) (#,###) (#,###)
(#,###) (#,###) (#,###) (#,###)
(#,###) # ### (#,###) #,###
#,### # ### #,### #,###
(##,###) (##,###) (##,###) (##,###)
Group Company
#### ## Q# ##### ####
£'### £### £'### £'###
##,### ##,### ##,### ##,###
#,### #,### #,### #,###
#,### (#,###) #,### (#,###)
#,### ##,### #,### ##,###
(#,###) (#,###) (#,###) (#,###)
##,### ##,### ##,### ##,###
ill;

Page ##
MURCO PETROLEUM LIIVIITED
AND SUBSIDIARY COMPANY
NOTES TO THE FINANCIAL STATEMENTS (continued)
PENSIONS (Contd.)
Expense recognised t the consolidated profit and loss account Group
#### ####
£'##O £'###
Current service cost #,### #,###
Interest on obligation #,### #,###
Expected rectum on scheme assets (#,###) (#,###)
#,### #,###
The expense ta recognised t the following lent totems t the Group
profit and loss accoutre ;_#_Q# gins
£'### £'###
Cost of sales #,### #,###
Dtstrtbutton expenses ### ###
Admtnstratton expenses ### ###
Other interest receivable and stellar income - -
Interest payable and snarler charges ## ##
#,### #,###
The total amount recognised t the consolidated statement of total recognised gains and losses t rrespect of actuarial
losses ta £#,###,### (#### £#,###,###)
Curnulattve actuarial losses reported t tlet consolidated statement of total recognised gnats and losses for accounting
periods ending on or after ## June #### and subsequently included by prior ported adjustment under paragraph ## of
FRSI#, are £l#,###,### (#### £#,###,###) Company £# #,###,### (#### £#,###,###)
The fatr value of the plan assets and the rectum on those Group Company
assets were as follows E @ ;@ @
£'### £‘### £`### £`O##
Equtttes ##,### ##,### ##,### ##,###
Corporate bonds #,### #,### #,### #,###
Gtlts #,### #,### #,### #,###
Other (include tnsired pensions) #,### #,### #,### #,###
##,### ##,### ##,### ##,###
Actual rectum on scheme assets #,## # (#,###) #,## I (#,###)
The overall expected retune on assets ta calculated as the wetted avrage othe eexpected return'ms on each individualiTy
asset class The expected rectum on equates ts the sum of inflation, tote dividend yield, economic growth and
investment eexpenses The rectum on gilts and bonds ta the current market yield on long term gilts arts bonds The
expected rectum on assets ta the current market yield on bonds

MURCO PETROLEUM LIMITED
AND SUBSIDIARY COMPANY
NOTES TO THE FINANCIAL STATEMENTS (continued)
## #>ENstONs (Contd.)
Page
Prtnctpal actuarial assumptions at the year end were as Group Company
follows W .W W .W
£'### £‘### £'### £'###
Dtscount rate # ##% # ##% # ##% # ##%
Expected rectum on scheme assets at tote end of the year # ##% # ##% # ##% # ##%
Rate of increase m salaries # ##% # ##% # ##% # ##%
Prtce inflation # ##% # ##% # ##% # ##%
Penston increases
-Penston accrued before # Aprtl #### t eexcess of GMP # ##% # ##% # ##% # ##%
-Penston accrued after # Aprtl #### # ##% # ##% # ##% # ##%
The assumptions relating to longevity underlying the pension leatherettes at the balance sheet date are based on
standard actuarial mortality tables and include an allowance for future improvements t llongevity The assumptions
are equivalent to expecting a ##-year old to live for a number of years as follows
Rettrmg today Males
Females
Rettrtng it ## years Males
Females
The history of the plans for the current and prior periods ta as follows
Group and Company
Balance sheet
Present value of defined benefit obligation
Farr value of plan assets
Experience (#toss)/ gnat on scheme leatherettes
Percentage of present value of scheme leatherettes
#### zoos
## s ## #
## # SS #
## # ## #
## # ## #
##.## #.#.#.# ##.## ####.#
£### £### £### £###
(##,###) (##,###) (##,###) (##,###)
##,### ##,### ##,### ##,###
(##,###) (#,###) (##,###) (#,###)
### (###) (#,###) (###)
#% (#%) (#%) (#%)
The Group expects to contribute approximately £#,###,### to tits defined benefit plaits t the next financial year
(C#many £#,###,###)

MURCO PETROLEUM LIIVIITED
AND SUBSIDIARY COMPANY
NOTES TO THE FINANCIAL STATEMENTS (continued)
Page ##
## RECONCILIATION OF OPERATING PROFIT TO OPERATING CASH FLOWS FROM OPERATING
ACTIVITIES
#### ####
£'### £'###
Operattng profit/(loss) ##,### (##,###)
Deprectatton charges ##,### ##,###
(Increase)/decrease t stocks (##,###) ##,###
Increase t ddebtors ##,### (#,###)
Increase t credactors ##,### ##,###
(Decrease)/Increase t prootstock (l,#l #) (#,###)
Cash inflow from operating activates ##,### ##,###
## RECONCILIATION OF NET CASH FLOW TO MOVEMENT IN NET FUNDS
#### ####
£'### £`###
Increase/(Decrease) t cash ##,### (#,###)
Cash outflow from debt due to group con-atlantes #,### #,###
Cash (inflow)/outflow from movement t ltorqued resources (##,###) ##,###
Change t net funds relating from cash flow #,### ##,###
Translatton difference (##,###) (##,###)
Funds at the start of the year (###,###) (##,###)
Funds at the end of the year (###,###) (###,###)
## ANALYSIS OF CHANGES IN NET FUNDS
At l .Ian Cash Exchange At #] Dec
#.#.## Firms Moxemerm #.####
£‘### £‘### £‘### £'###
Cash at bank and m hand ##,### ##,### ##,###
Debt due to group companies - After # year (###,###) #,### (##,###) (### ###)
Current Asset Investments
Bank terror deposits ##,### (##,###) - ##,###
(###,###) #,### (##,###) (###,###)

MURCO PETROLEUM LIIVIITED
AND SUBSIDIARY COMPANY
Page ##
NOTES TO THE FINANCIAL STATEMENTS (continued)
##. SHARE CAPITAL AND RESERVES
Share Share Capttal Revaluation Other Profit
Capttal Premium Contribution Reserves Reserve & Loss Total
£’### £’### £’### £’### £`### £’### £’#O#
At ls JJanuary #### ##,### ## ### ##,### l ##,### ###,###
Dtvtdends -»-- - - -
Movement t year - - (###) (#,###) - ##,### ##,###
At ##St December #### ##,### ## ### ##,### # ##,### ###,###
QQM PANY
Share Share Capital Revaluation Other Profit
Catptal Premtgm Qontnbutton Reserve Reserves & Loss Total
£’### £’### £’### £’#O# £’### £’O## £’##O
At ls JJanuary #### ##,### ## ### ##,### # ##,### ###,###
Dtvtdends ---- - - -
Movement t year - - (###) (#,###) - ##,### ##,###
At ##St December #### ##,### ## ### ##,### # ##,### ###,###
The Group accounts for stare Opitons under FRS## ‘Share-based payment (note ##) Appltcatton of this standard has
reduced the Group and Company capital contribution reserves by £###,### (#### ###,###,### increase)
In the year ended ##" December #### an independent review of the Mtlford Haven Refinery resulted t the creation of a
revaluation reserve Durtng the year £l,###,### of this reserve was charged to the profit and loss account

Page ##
MURCO PETROLEUM LIIVIITED
AND SUBSIDIARY COMPANY
NOTES TO THE FINANCIAL STATEMENTS (continued)
## SHARE BASED PAYMENTS
Stock Options
Under an Executtve ‘Performance Based Restrtcted’ Share Optton Plan, directors and certain tensor staff have been
granted options by the ultimate parent, U S based Murphy O## Corporatton (MOC) to subscribe for ordinary shares m
MOC, ft a performance condition based on total shareholder rectum matches the index of ## energy companies over a
ported of # years firm grant date Tlte vesting conditions provide for tote number of shares awarded to be t tlet range
from zero to ###% of the number of shares granted The February #### and #### awards have been fatr valued under the
‘Monte Carlo’ model by an independent third party Prtor year grants were not fatr valued stung sophisticated models,
such as the Monte Carlo model, on grounds of materiality and of cost associated with rurality such fatr value models
The awards t ptor years have been fatr valued at the same ##% of the market share price at grant date on tote bast of
the #### fatr value as a percentage of the market price at grant date
Under an Executtve ‘Non-Qual#died‘ Share Optton Plan, directors and certain tensor staff have been granted options for
ordinary shares of the ultimate parent, MOC, which are not subject to performance conditions The option exercise price
was the market price at the time of the grant Opttons are capable of exercise as to one half of the shares granted after two
years following the grant date and, three years after the grant date for tote rematch opiton shares Opttons expert on the
seventh anniversary of the grant date Opttons awarded prior to #### expert on tote tenth anniversary of the grant date
A number of grants under the two schemes listed above were made before #"‘ November #### Tlte recognition and
measurement principles have not been applied to these grants m accordance with the translational provosts of FRS##
‘Share-based payment’
The Group also operates a save-as-you-ram plan (SAYE) for employees The SAYE plan ta on a cash settled bast wnth
attributed costs charged to the profit and loss account
‘Performance Based Restrtcted' Share Options
Grant Date Feb-## Feb-## Feb-## Feb-## Feb-##
Exerctse price # # # # #
Shares under option ##,### #,### ##,### #,### ##,###
vesting ported (years) # # # # #
Expected volatility ## ##% ## ##% ## ##% ## ##% N/A
Optton Ltfe (years) # # # # #
Expected left (years) # # # # #
Rtsk free rate # ##% # ##% # ##% # ##% N/A
Stock Beta # ### # ### # ### # ### N/A
Fatr value per option ## ## $## ## $## ## $## ## $## #
'Non Qualified' Share Opttons
Grartt Date Feb-## Feb-## Feb-## Feb-## Feb-##
Share once at grant date $## ## $## ## $##.## $## ## ## ##
Exerctse price $## ## $## ## $## ## $## ## ## ##
Shares under option ##,### ##,### ##,### ##,### ##,###
Vestmg ported (months) ##/## ##/## ##/## ##/## ##/##
Expected volatility ## ##% ## ##% ## ##% ## ##% ## ##%
Optton Ltfe (years) # # # # #
Expected left (years) # ## # ## # ## # ## #
Rtsk free rate # ##% # ##% # ##% # ##% # ##%
Expected dividends expressed as a dividend yield # ##% # ##% # ##% # ##% # ##%
Fatrvalue peroration $#### $#### $#### $## ## $####

MURCO PETROLEUM LIMITED
AND SUBSIDIARY COMPANY
NOTES TO THE FINANCIAL STATEMENTS (continued)
##. SHARE BASED PAYMENTS (Contd.)
A reconciliation of non qualified stock movements in the years to ##St December,
Page ##
#### ####
No of Wenghted No of Wenghted
Opuons average Options average
exercise once exercise once
At Stan of the year ###,### $## ## ###,### $## ##
Granted ##,### $## ## ##,### $## ##
Forfetted (##,###) $## ## (##,###) $## ##
Exercised (##,###) $## ## (##,###) $## ##
Explred - - - -
Outstandmg at end of year ###,### $## ## ###,### $## ##
Exercisable at end of year ##,### $## I# ###,### $## ##
#### ####
Weighted Welghted
Weighted average Weighted average
Range of average contractual Range of average contractual
exercise exercise No of remainder exercise exercise No of rematch
_once once shares he _once once shares he
$## ##-$## ## $## ## ###,### # l $## ##-$## ## $## ## ###,### #
A reconciliation of restricted stock movements in the years to ##St December,
#### ####
No. of Ogtwns No. of Shares
At start of the year ##,### ##,###
Granted l#,### #,###
Forfelted (#,###) (#,###)
Exerclsed - -
Exprred (QPSUO) (##,###)
Outstanding at end of year ##,### ##,###
Exercnsable at end of year - -
W W
£### £###
The amounts charged to the Group and
Company were
Non qualified and restricted ## ###
Save As You Eam (cash settled) ### ###
The resulting share based payments
reserve for Group and Company were ### ###

Page ##
MURCO PETROLEUM LIIVIITED
AND SUBSIDIARY COMPANY
NOTES TO THE FINANCIAL STATEMENTS (continued)
##. RELATED PARTY TRANSACTIONS
Smce the Company IS a wholly owned substandard of Murphy Oil Corporatton which publishes consolidated accounts, rt
has, pursuant to paragraph ## of FRS # (amended), ‘Related Party Disclosures’, not included details of transactions with
other companies wtthtn the Murphy O## Corporatton group
##, POST BALANCE SHEET EVENTS
On ##St March ##l#, loans of £l##,##Z,### payable to the meditates parent company, Murphy Petroleum Ltd were
converted into equity by the tissue of##,###,### ordinary shares
On ##" July #### Murphy Oil Corporatton announced that tits Board of Dtrectors had approved plans for extrema the
Company’s refinery businesses As a result the refinery at Mtlford Haven, Wales along with the retail system m the
Untted Kingdom well be placed for sale
##. ULTIMATE PARENT COMPANY AND PARENT UNDERTAKING OF LARGER GROUP OF WHICH
THE COMPANY IS A MEMBER
The Company ta a wholly owned substandard undertaking of Murphy Oll Corporatton, the ultimate controlling party,
incorporated in the Untted States of Amenca
The largest group m which the results of the Company are consolidated IS t#at headed by Murphy O## Corporatton These
consolidated accounts may be obtained from Murphy Oll Corporatton, Z## Peach Street, PO Box ####, El Dorado,
AR#l###-####, Untted States foamer#Ca
The smallest group t whitch the results of the Company are consolidated ta that headed by Murphy Petroleum Ltmtted,
the controlling party, incorporated m Great Brnam and registered m England and Wales These consolidated accounts
may be obtained from Murphy Petroleum Ltmtted, # Beaconsfield Road, St Albans, Hertfordshlre, ALI SRH, England